Can You Really Afford to Build? A Clear Look at What First Home Buyers Need to Know
For many first home buyers, the idea of building feels exciting until the numbers start to add up and look confusing.
You assess base prices, compare options and start imagining your future home. Then the questions settle in: What does the price really include? What costs come later? And can you truly afford to build?
The truth is that building a home is often more affordable than buyers think.
The challenge is not the price itself but the lack of clarity around the full cost picture. When buyers understand every part of the journey, affordability becomes far easier to achieve.
As Marella Homes Director Liam Worthington explains, “Most first home buyers are closer to building than they realise. The problem is not their budget, it’s the uncertainty. When people don’t have a clear picture of what a build involves, it becomes hard to make confident decisions.”
This guide breaks down what buyers often overlook and what you really need to understand to plan your build with confidence.
What Does It Really Mean to Afford to Build?
Affordability is not just about the promotional number on a brochure. Base prices can look appealing, but they rarely reflect the full picture with a lot of volume builders.
To truly afford to build, buyers need clarity across:
- the home price
- the land price
- site costs
- selections and upgrades
- approvals and professional fees
- external works
- contingencies
Understanding each of these early makes the process predictable instead of overwhelming, and allows you to make a decision with confidence.
Costs Buyers Often Miss When Planning Their Build
Many first home buyers focus on the base price of the home and forget about the additional expenses that shape the final cost.
Site Preparation and Land Conditions
The land itself influences cost more than many people expect. Elements like the below can meaningfully change the final price:
- slope
- soil classification
- retaining
- drainage
- access for machinery
A reliable and trustworthy builder should review your land before you commit to avoid surprises later.
Selections and Upgrades
Even when buyers want a simple home, some upgrades become essential for everyday living. These can include:
- flooring beyond the basic allowance
- kitchen finishes
- Appliances
- lighting
- wardrobes and storage
- landscaping
Read about our inclusions and the Marella difference.
Approvals and Professional Fees
Planning approvals, surveys, engineering reports and compliance fees all contribute to the overall budget. They are necessary costs but often not included in early price estimates with some builders.
Contingencies and Unplanned Expenses
Weather delays, supply availability and specification changes can introduce minor but real costs during construction.
As Liam notes, “Unexpected costs often come from uncertainty, not from the build itself. When everything is defined at the start, buyers stay in control. You should never feel like the budget is moving faster than you can keep track.”
Budgeting Like a Pro: What Every Buyer Should Plan For
The most confident first home buyers take a structured approach to budgeting based on the points above. Our top tips include:
- keeping a contingency fund of at least 5 to 10 percent
- reviewing land with a builder before signing
- comparing inclusion lists line by line
- understanding that the cheapest price is rarely the most accurate
- asking for a clear explanation of all allowances and potential variations
So, can you really afford to build?
For many buyers, the answer is yes, as long as they understand the full picture from the start.
By breaking down the real costs, planning properly and working with a builder who offers clarity, confidence and consistency, first home buyers can move forward with certainty rather than guesswork.
Building a home is one of the biggest steps you will take, but it becomes far less daunting when you have the right guidance and a clear path in front of you.
